Logbooks are actually the registration certificate which is issued by the DVLA or the driving vehicle licensing agency in the UK. Now in this respect you need to know that the formation of logbook, which was known as the V5 document is now changed and it is known as the V5C document according to the new regulation. The validation of the logbook is upto 5 years and it comprises of all the entries and details regarding the owner of vehicle, registration number, the chassis number, registered keeper of the logbook, model, engine number and also the color of the car.
We bet you would know the various means of borrowing; but did you know that you shall be able to borrow a complete loan by just using a logbook? Yes, this is completely true, that you can take up a loan by showing the logbook. This is known as the logbook loan. This can be depicted as a personal loan which is secured against a car. A UK resident becomes eligible for a logbook loan, if he/she has a logbook registered in their name. In exchange, the logbook and any other details pertaining to the car will be kept by the lender. But one of the major advantages of the logbook loan is, unlike the traditional loan, you won’t have to surrender the vehicle completely and you shall have the complete freedom of using the vehicle for your purposes.
The loan that can be borrowed ranges from £500 to £50,000, but you need to remember that the loan will be granted on the fact that the condition of the car is good. A certain test is conducted that ensures the car can be driven comfortably and no problems are there in its mechanism. This test is known as the MOT test and if a satisfactory result is obtained, the borrower will be granted the loan within a very short period of time. The criteria that need to be met before granting the loan are as follows:
For being eligible for a logbook loan, the logbook needs to be registered in the name of the borrower.
The vehicle needs to be less than 8 years old against which the logbook loan is being taken.
A borrower is preferred to be in full time employment for the loans being granted or he/she needs to show a proof that they have a constant source of income which will assure the lender that the borrower is capable of repaying the loan.
The vehicle needs to be cleared of any finance or dues in taxes. With any due payments, the loans will not be granted.
The vehicle must be insured and taxed. This is important because since the lender is providing the loan, he/she wants to be on the safer side and thus it is important.
You can opt for logbook loans from any banks or any other financial institutions, but if you are in a hurry, then you can opt for the online lenders. The online method of applying loan saves a lot of money and time.
A borrower is able to have access to a large number of online lenders through the internet. But you need to be sure that the lender from whom you are getting the loan is absolutely a genuine one. Since this is a major asset you need to do proper research before opting for such an online lender. If you are looking for more information then you can check out this website.